good morning. welcome to "worldwide exchange." i'm kelly evans. these are your headlines today from around the world. the massachusetts police are due to hold a press conference as nbc learns the extensive police operation under way in watertown, massachusetts, is linked to the marathon bombings monday night in boston. 3r069s beat, but revenues miss. microsoft, ibm and google are all out with mixed numbers last night after the bell. >> gamny's sap missed first quarter operating revenues as its performance in asia slip.

if i look at the pipeline and the business out there, we have a very, very solid business also in asia pacific. >> and european stocks are higher this morning, despite wall street being on track to post its worst in a year. the jab niece finance minister is insisting his counterpart wholeheartedly back japan's stimulus. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> welcome to "worldwide exchange" this morning. we will bring you the latest business news. we are, also, also watching events under way in watertown, miss massachusetts, this morning. you're looking there at footage, watertown, massachusetts, is the site in the wee hours of the morning where there -- where two

young men armed with guns and is explosives and what appear to be backpacks were engaged in a violent standoff with police. this is after a shooting on the campus of massachusetts institute of technology in cambridge, massachusetts, just a short drive away. again, we can tell you at least right now, nbc is reporting that the two suspects believed to be in this incident are the same two suspects that were fingered for the marathon bombings in boston on monday. we will follow pictures, we will, of course, follow news for you out of this and we will interrupt our guests and programming as needed to bring you those updates throughout the program this morning. in the meantime, let's get a check on how markets are trading. first, let's head out to singapore where li sixuan is keeping an eye on things. what can you tell us? >> indeed, thank you, kelly. a lot of green arrows in asia today as the greater china markets are indeed the stellar

outperformer with the shanghai composite, the hang seng gaining some 2%. also, lots of speculation around a potential imminent widening of the u.n.'s trading ban. we saw technical rebound in financials and commodity plays, especially from the big aussie miners that were hit hard yesterday. metals soared almost 10% today. bhp billiton, rio tinto and newcrest gained some 5%. also what's happening in the region's tech states, lenovo shares soared over 9% in hong kong after reports that the chinese pcmaker is in talk toes buy ibm's lost-cost server business. lenovo acquired ibm's pc unit eight years ago in a $1.25 billion deal.

and sharp has struck an agreement to provide samsung electric trom tronnics with its panels for laptops earlier this summer. sharp gained 4% and sum sung electronics eased about 0.5% in south korea. back to you. >> thanks very much for that. now here is a quick look at how we're looking across the european session. up about 0.5% for the stoxx europe 600 and advancers outpacing decliners by about a two to one ratio this morning. take a look at some of the bourses specifically. we are seeing a rebound with the ftse up in italy better than 1%. the xetra dax continues its recovery from that sharp sell-off we saw earlier in the week. meanwhile, the ftse adding about 0. %. here is a couple of top stocks to keep an eye on. we got mixed reports last night in terms of earnings. ibm hit hard, down 6 of%.

google down 0.5% after it struggles with what one analyst calls an acceptable first quarter. microsoft higher by 3.3%. sap posting weak first quarter results, as well. shares down about 1.6% on the back of that. here is a look at the bond space this morning. you're seeing a little bit of a sell-off. yields back up to 4.65%. italian debt continues to rally as that country moves forward with its presidential election. the german bund is selling off a bit, so about 1.25% is what's happening there. the euro/dollar is about 0.2%. consistent with the better performance of equity these morning. the aussie/dollar continues its strong performance despite the concerns we've seen emanating across did commodity complex this week. the dollar/yen, jumping and look at this, 99.28. so we are getting ever closer to

that is 00 mark. up about 11% today. the sterling/dollar rallying, too. some of the world's biggest money managers have been meeting at the russia forum. taking a closer look at the best place toes invest in these uncertain times. let's get out to geoff cutmore who joins us now from that event. hi, geoff. >> hi, kelly. thank you very much, indeed, for that. i have with me pius putrey. he joins me from lgt. his focus is in his hedge funds and is insurance products. but you know an awful lot about the russian market, as well. let's ask you about that as we kick off here. i know lgt runs some money that's invested into the russian economy. tell us a little bit about the character of this market and whether you can put cash to work here and feel comfortable that you are going to get a return. >> yep. we are invested in the russian

market. but it's true, we have a lower allocation to it. the 11% toe 2% sounds quite low. it is a difficult way to access the markets. we see fundamentally from the point of view a strong currency. you look at low valuation, you look at the current surplus, you look at growing middle income class, which wants to consume, so key market indicators are actually strong. the challenge is much more the investment type. so we look at a narrow market, the way you invest is mainly into oil and energy companies. which most of them are state owned to the majority, so we end up being minority investors. what that means is it's still difficult for to us play to the

russian growth topic investmentwise. what we can do is we can look at valuation, we can look at it from an optimal point of view. we can see if there is opportunities which a lot of investors maybe don't want to take that risk. these type of opportunities we've been able to pick up. track records, it has been great. double digit type of return in the equity space. >> so if you were allocating money into russia at the moment, and i guess your company is buying and selling, which parts of the economy are good value? which parts of the economy look attractive at the moment? there is a strong bias with orient energy, if i look at the large companies you can invest with. so it has a lot to do with our

global growth. i think everything related to oil and energy, the current surplus is related to the oil price. the oil prices at the end are related to the growth and the demand from china. it's less the pure russian theme you can play. it's much more related for our belief in the scenario in terms of where growth is going. there, i think we believe that the end, while a lot of investors have been skeptical, still are skeptical, but we believe there is probably a higher risk not taking a risk and that's the thing where you have the opportunity. but at the end, if you look at the valuation, there, if you would take maybe one or two steps forward increasing productivity of the company, i mean, there are opportunities. you can actually shape. >> let's put your hedge fund hat

on for a moment. it's been a difficult period for a lot of hedge funds. there's been a reduction in the use of leverage. is 2013 going to be a better year once we get to the end of the year? it's already looking difficult because of the declines we've seen in gold and some commodity prices. give us a sense of how the hedge fund world is managing its way through this market. >> i think what has been challenging on the hedge fund side is that truly this risk on/risk off scenarios we have seen in 2011, 2012. i think we see that less in 2013. we see that the central banks are more going all in the same direction, which somehow provides a platform for investments. this is a better situation for hedge funds. this -- if you look at the way we invest, we see that actually correlation across asset clouds

have decreased. so actually, i think we are more positive for 2013. it has started well. now we see trends. trends is a good investment. on the cta side, it's a very good investment. also gold going down, but it has been a strong trend. yen has been a strong trend. but we see more topics we can play through hedge fund strategies. >> and what about survival at this point? because there are rumors that some hedge funds have actually not managed to survive this recent passage of market behavior. do you think we're going to see closure rates going up for full year 2013? >> i think it's, in general, actually, the hedge fund side, it's a bias of survivor. so the strong ones who do well, they will continue. the other ones are closing down.

it has been definitely difficult two to three years, so you need to make a very, very strong case where investors should still get money to you. but it's, at the end, better quality comes out of such a process. yes, i think we would probably be better consolidation. >> it's been a pleasure catching up with you. thanks so much for coming to see us. a couple other fascinating interviews coming for you on the program, we're going to talk to the moscow exchange. earlier on, we were listening to the lady who runs the property management agency about the privatization program. the moscow exchange should benefit from this. but it has been tough going for that exchange in recent years. we're going to also talk to the incoming head of the central bank. elvira navoulina. she is on my panel. i'm doing a panel here on the

central banking and the impact of unconventional banking on countries like russia. we will spend some time talking with her and hopefully we'll bring you some of that interview later on in cnbc programming. for the time being, kelly, let me send it back to you as you keep in touch with the markets. >> thank you so much, geoff. now i want to bring you the latest on the situation out of boston. between, one dead, a second suspect at large as police continue to investigate a fatal shooting that happened on the m.i.t. campus shortly after 10:00 p.m. eastern last night. so that was just about four or five hours ago. now, the shooting of the police officer followed by an armed car jacking happened in cambridge on the m.i.t. campus. very quickly, the entire operation moved to watertown, massachusetts, which is the pictures you are looking at now. nbc can tell you that the two

suspects involved are connected to the marathon attack on monday night, so the greater boston area which has, of course, been dealing with this situation since monday now trying -- police and authorities are trying to figure out the connection between the two event peps so we'll follow this situation for you. we will hear from chris pa loan in just about half an hour's time. he's on the ground for nbc there. also coming up on today's program, we're looking at the japanese yen. it is the word in washington where g-20 finance ministers are lending support to japan's monetary stimulus program. we'll have analysis from john hardy at 11:00 cet. also, india had weaker than expected revenues. and straight off the back of major u.s. tech earnings, we'll speak to the ceo of san francisco based slunk about how

the data firm is taking on the old guard. he's joining out. and automakers rolling out their latest vehicles in the car show. phil lebeau will join us live from that show at 11:40 cet. welcnew york state, where cutting taxes for families and businesses is our business. we've reduced taxes and lowered costs to save businesses more than two billion dollars to grow jobs, cut middle class income taxes to the lowest rate in sixty years, and we're creating tax free zones for business startups. the new new york is working creating tens of thousands of new businesses, and we're just getting started. to grow or start your business visit thenewny.com

there was a car jacking that took place, as well, in cambridge involving a mercedes suv. that car was ultimately discovered here in watertown and is pursued by the watertown police department. the pursuit went into a residential neighborhood not far from here where there was an exchange of gunfire between watertown police, nbta police officer and is two suspects in this suv. during the course of that pursuit, several explosive devices were discharged from the car at the police officers. in the exchange of the gunfire, we believe that one of the suspects was struck and ultimately taken into custody. a second suspect was able to flee he from that car and there is an active search going on at this point in time. an mbta police officer was struck during that exchange of gunfire and is currently at the

hospital in critical condition. there is an active search by tactical teams from the state police, the boston police department and mlac. the watertown police department are involved in this search as well as traffic diversion throughout the area. the most important message that we are doing right now is toward public safety and the safety of those people in that neighborhood. we are asking everyone to shelter in place for the tim being not to leave their homes. if they see something suspicious, other than a police officer coming to their door, they should call 911 immediately. we also want to forewarn motorists traveling through this particular area, even though we're locked down in this neighborhood, that they should not stop for anyone and pick up anyone along the side of the roadway. what we're looking for right now is a suspect consistent with the description of suspect number two, the white capped individual

who is involved in monday's bombing of the boston marathon. he was -- we have a picture, a video from the 7-eleven in cambridge last night that he is dressed in a gray hoodie-type sweatshirt. he's a light skinned or caucasian mail with longer brown curly hair. you've seen the picture. you all have it. that's the individual that we're looking for at this moment. >> that's suspect number two? >> that's suspect number two, the white capped individual. >> suspect number one was shot, then? >> that's correct. >> so suspect number one was -- >> i just want to be clear. we will do regular updates to this, but right now we're in a public safety mode here. our immediate concern is for those people in that neighbor up there. we have an active search going on by teams to locate and apprehend this particular individual. he should be considered armed

and dangerous and is a threat to anybody that might approach him. so, please, use extreme caution and stay in your homes. if you hear something, if you see something unusual, we would like you to call 911. i'm going to ask chief deveaux of the watertown police department to briefly describe the streets, the neighborhood and everyone that's involved up there. >> wait a minute. we're going to let the chief get to shows speakers the. >> what's your name? >> we are calling on the watertown community to be calm at this time. we are talking about dexter, laurel street. we're going to be doing a search. please stay in your homes, do not come out. we will have uniformed officers there to assist with the screening and the safety of these neighborhoods. again, the watertown community has been always very good for asking for your cooperation to assist us during this difficult

time. >> and there will be controlled blasts of some sort in east watertown? >> no. there are eod or explosive ordinance teams that have been up there that are in the process of recovering anything that was discharged from those vehicles. so we're making those safe at this point. some of them went off, some we believe did not. >> do you know how many? >> we're not prepared to talked about identifications. that was one of the reasons those videos were released yesterday. >> where was he shot? >> i'm not going to get into specifics about that. we don't have the names at this point. this is an ongoing investigate. we're trying to get information out to the people who live here that they should stay in their homes and not open their girls unless police officers are there. there's a 20-block perimeter around the location that chief

devaux just talked about. we believe this to away terrorist. we believe this to be a man who has come here to kill people. we need to get him in custody. there ever been two police officers, one killed and one badly injured tonight. our sympathies go out to chief mcmillan who has a severely injured officer in the hospital and to the families of those officers. this is a terrible tragedy. we don't want to increase it. we want to be very careful of what we do here. >> folks, we've got to get back to the incident. we'll be back in about an hour to brief you again. thank you. >> we were listening to an update from boston authorities about the situation in watertown, massachusetts, this following an incident about 10:00 local time in cambridge that led to the death of an officer and apparently a flight by the two suspects involved in

that incident after a car jacking to watertown where one has been shot dead by police. the other is, as has been described by authorities there, at large. so they're describing the precautions they want people in the area to take. he is considered armed and dangerous. we'll continue to follow that story to you this morning. we're turning out attention now to wipro. the company is warning that the revenue situation for the furniture quarter will likely be less than forecast. the company says global demand is softening and its indian business will be, as well. indian markets are closed today, so no share reaction to look for just yet. let's speak with the ceo of wipro. where in particular are you seeing softness? >> i think the quarter four has gone well.

quite n range of the guidance that were given. despite the headwind with respect to the currency of 70 basis points, and we had a cash flow which was more than 100% of the net income for the whole year. so the last year has been good, growth coming from oil and gas. we have got businesses from health care, life sciences and manufacturing is fighting back. so far as the quarter one is concerned, because there is a significant part of the business which comes from india and middle east, which generally picks in quarter four and quarter on quarter with declines on quarter one. it is that reason and some of the push out that we have seen in the discretionary ends from quarter one where our expectation is while quarter one would be the way we have articulated, quarter two to be

much better. >> seasonal weakness, despite wa you're talking about, is there an industry underthreat as we see this shift away from traditional pcs, towards mobile, etcetera, i know you're a big and diversified company, but how are you going to navigate this future? >> you know, if you look, we have the business of the close so now it is the i.t. business that you're doing effective first of april 2013. so it is a play i.t. business operating in the markets like the u.s. and europe and also high velocity markets like the emerging markets as well as high focus markets where our penetration level today's low. so we think there is a lot of head space. and the way more occurs are

looking at us is not only the cio, but the ceo and coos because the kind of solution we're offering expands much beyond what the cio office does because of the advanced technologies. from that standpoint, we have done all the recry sit toes make sure as we go forward we have been able to address the needs of the customers as we go along. >> final question to talk about your home market of india where there's a lot of global market interests, there's a sense that perhaps it's losing transaction. what's your own view? >> i think it will be. from last year, perhaps about six months, it was a little in a position where there's a lot of reform spending, a lot of gun men got into re-energizing. speaking to all of you, talking about it, now he's in boston, new york and washington talking to the investors. i think some of the reforms

announcement that we're hearing seems to be a lot of action taking place. the company has come in. you saw the land reforms coming in, land acquisition. from that point of view, we're speccing unfolding to take place and already the inflation is coming under control. the interest rates will soften. so we think there will be momentum coming back at this point in time. but as you go forward, quarter one, quarter two, quarter two on ward, we should be looking good so far as the indian domestic market is concerned. >> thank you for your time this morning. coming up on the program, we will speak to the ceo of data analytics. stay tuned for that. we're going to take a break now, but, of course, we will also continue to keep you updated with the latest out of the greater boston area. chris palne will join us from the ground in less than a half an o'hare's time.

welcome back to "worldwide exchange." police tell residents to stay inside, warning he is armed and dangerous. and marathon bombing suspect number one was shot during a fire fight with police that followed an incident at m.i.t. in which a campus police officer

was killed. >> in the exchange of the gunfire, we believe that one of the suspects was struck and ultimately taken into custody. a second suspect was able to flee tr that car and there was an active search going on at this point in time. >> in markets news, profits beat revenue miss. microsoft, ibm ask google all out with mixed numbers after the bell. german softwaremaker sap also missed expectations as its performance in asia slips. the group's ceo tells cnbc he's still bullish on the region. >> if i look at the pipeline and the business out there, we have a very solid business also in asia pacific. >> now we have a tragic situation under way in the greater boston area. apparently related to the marathon bombings on monday. we have been following the news for you.

markets, of course, largely shrugging it off this morning. in fact, we're seeing rallies shape up across europe on what's being described as traders as low amount of activity, not much news out of europe and in the meantime, central banks continue to support the market with plenty of liquidity. so you're seeing the ftse up about 0.3%. same for the xetra dax. the ftse mib in italy one of the best performers as that country continues still to try to get itself a president. take a look at what's happening in other asset classes. bond yields, for example, are showing relief across the italian space. the ten-year just down about 4.25%. the u.s. ten-year and the japanese bunch are seeing yields move up a little bit. not necessarily any knee jerk reaction either to the event in boston or things happening elsewhere in global markets

today. the euro/dollar is rallying at last check. the japanese yen inching ever closer to that $100 mark. sterling is rallying this morning, as well. after the deputy governor of china's central bank said china may widen the u.n.'s trading ban. ubs went a step further saying the ban will likely happen within days. right now, china's exchange rate is only allow to merge about 1%. thailand and indonesia still remain on the quest for generation. i'm jound now by joe sud well. he is author of how asia works.

i've got the book here. it's interesting. this is just out, but it's in paperback. it's asians themselves who want to know how asia works or perhaps doesn't. >> my books sell in the uk, as well. people in asia travel a lot and they want paper back books. >> and what is it here inspect this is pretty much the third that you've written on this theme. why is it that some of these southern and southeastern asian economies frankly aren't able to follow the patterns that japan and korea more likely set? >> china implemented land reform. they went for a gardening style of agricultural with very high yield and a very acute focus on manufacturing. and then wa economists call financial repression. they employ capital controls to trap capital at home and they

provided consumers with low interest rates which allowed them to have money to invest. a very focused strategy. southeast asia interestingly have companies that have berten dowments. better climate for agriculture in most cases and at least as much investable funds. savings rates are as high in northeast asia, but they blew it because they didn't get the strategy right and the manufacturing strategy right and the financial strategy right. >> is this a tail about what should have happened or -- >> yeah, it's a tale about what policymakers can do now, but it's about how developmental outcomes are made above all by policy. and strategy. because the endowment can help you or can hinder you, but human beings overcome these endowments in the end.

>> what's interesting from an investment point of view, as well, beyond that struggling now that it's had its boom, it's had too much of a boom, it's trying to get growth back, if you say maybe policy measures are starting to learn these lessons, does that not spell a huge opportunity for investors? >> the investment thing is interesting. actually, you did very badly by investing in the asian companies which developed well. they were very good at targeting their money, technical upgrading and learning. these are a bust in fundamental returns. this is because the chinese are much better at directing capital to development. a ul it really tells us in the end is development is a

two-stage process. southeast asia got it all wrong. they've gone to this anglo-saxon vehicle before they got any industry, before they got their agriculture sorted out. >> i wonder, too, if there aren't ways we can draw lessons from the european example where spain was held up as the poster child for following the right model. look at iberia and meanwhile, italy was much more protectionist. mid decade, it was seen as italy got it wrong. >> basically, spain was doing the right thing. you get to a point where you develop to a certain level. spain understands that. italy hasn't. to my mind, italy is the bigger problem in europe at the moment. italy had a fantastic report in

the '50s and the '60s. japan may be changing a little bit and italy isn't. it's the story of two economics. you need one economic to develop and you need another to develop for efficiency. >> quickly, in a nutshell, is what japan is doing now, is it going to work? >> the your is out, but they have to move at this point because otherwise they're going to die the death of a thousand cuts. these are the people who made development happen. it was a major oligarch who dragged east asia out of the stone age. the japanese are more than capable. they've proven it over the years. they have to get focused o problem. >> joe, thanks very much for coming by. joe studwell is the author of "how asia works." finance minister taro oso says they have no objection to his

country's stimulus. >> hi, kelly. japan's finance minister said today that japan gained the g-20 members' understanding on its monetary policy. he explained that the bold easing measures by the bank of japan are aimed at ending the long lasting deflation. the boj chief backed aso up by saying the monetary easing is not aimed at weakening the yen. he pointed out that it is a domestically oriented policy designed to achieve a 2% inflation target in two years. it's confident that the market and other policies understand japan's intent. the nikkei 225 rose slightly following these comments. analysts said that the market took these comments as a sign that japan's policies are not being criticized at the meeting.

back to you, kelly. >> okay, thanks very much for that. now, staying with some other stories out of asia today, the world health organization says it still has no proof that the latest strain of bird flu in china can be passed between humans, but they're trying to figure out if it can be. international experts will report back after a one-week fact-finding mission. jerl, chinese health officials were probing whether a family had passed the strain between one another. and an influential u.s. sntist says pyongyang is at least one nuclear test away from building a missile if not more. others say a fourth nuclear test could be held within weeks. still, he cautioned that the north's military isn't cape knowledge of pulling off most of its threat. and in pakistan, a former president is under arrest. he initially fled to be brought back to court today.

he faces treason charges. the former military ruler recently returned to pakistan hoping to run in the next general election. and let's give you a look at what's on the agenda after the weekend in asia on monday. in hong kong, we get fist quarter earnings from the world commercial bank. indian investors will be watching for wipro's performance. we spoke with the ceo earlier on the program. on the macro front, it's march cpi figures out of hong kong. and we are turning now to the latest out of boston. the fbi believes that the two men responsible for the boston marathon bombing are the two men now connected with events that played out tragically overnight in watertown, massachusetts. one is dead. the other identified as suspect number two from these videos that the fbi had previously released yesterday in the white hat is still believed to be at large. in fact, he was described as being armed and dangerous to people in the area of watertown,

massachusetts, where both suspects fled after an incident on the m.i.t. campus that involved a car jacking and the death of a campus police officer. one of the suspects, the one in the black hat from the photos and videos released from the fbi is dead. the other, wearing a white hat is at large considered armed and dangerous. they've been warning motorists and residents in the area and as soon as we get any information, of course, we will bring it to you. also, nbc's chris palone will join us when we come back. welcnew york state, where cutting taxes for families and businesses is our business. we've reduced taxes and lowered costs to save businesses more than two billion dollars to grow jobs, cut middle class income taxes to the lowest rate in sixty years, and we're creating tax free zones for business startups. the new new york is working

creating tens of thousands of new businesses, and we're just getting started. to grow or start your business visit thenewny.com

welcome back to the program. we are keeping an eye on shares of sap this morning. reported first quarter revenue shy of estimates as asian demand for its software dropped. still, in an interview with cnbc earlier, co-ceo jim hagueman sounded confident that growth in the asia pacific region was still solid. >> in asia, we have had now 13 consecutive quarters of double digit growth. 12, actually. this is the first time we have an issue in asia. what that means is you have an organization that has been growing rapidly. with that comes new demand on

leadership. we have been make something changes. in q1 we had a couple of key countries where we were looking for the leadership to take this organization to the next level. that's why it's impacting q1. but if i look at the pipeline and the business out there, we have a very, very solid business also in asia pacific. >> they also said revenue from sap's cloud technology division was a bright spot in the report, jumping 380% from a year earlier. he responded to speculation the company might make its cloud service private, as well. >> we do see what cloud does for our customers is it radically simplifies complexity. running global supply chains is not ease or realtime banks. that's wa we do for a living since 41 years. we think there's an opportunity for us to go in and further simplify the infrastructure. hannah will be a major part of that because it takes complexity

away. >> just to recap the tech earnings last night, ibm reported earnings that fell shy of analyst expectations. fist quarter revenue was down 5% and net income decline by 1%. now analysts are questioning whether this is a temporary set back or whether the business is going to drop down for the foreseeable future. and another tech bellwether out with earnings, microsoft third quarter results topped expectations. the software giant is contend g contending, of course, the difficult slide in its personal computers. the company also announced a change in the executive suite, cfo peter cline is leading the company. microsoft has seen the departure of other executives in recent years. still, shares are spinning positively up 2.5%.

search giant google reporting first quarter earnings thursday and topping market expectations. income rose 16% on strong growth in its core business. still, average cost measuring how much advertisers pay when users click on their ads did fall by about 4% from the first quarter of 2012. in a korchbt call, executives assured shareholders that the company is looking to futures. google shares down about 0.1% there. just shy of that 600 euro mark. san francisco-based software analytics company slunk went public a year ago today. here is how the stock has been trading since. you can see up about 13% over the past year. work on my vision. down about 2.5% in the session yesterday. the company saying it plan toes break even this year and increase its customer base by

20%. welcome. >> good morning. >> so that 20% increase is not going to come from overseas? >> it should come from all geographies. last year, all of our geographies grew in ek excess of 60%. we're very excite bd the business. >> where do you see most strength? >> it's been consistent across the globe. we're here in europe this week because we had a large customer event in london yesterday and 500 people. so our customers are really excited about what we're doing. that enthusiasm is translating into bookings. >> what does plun do? >> it's data mining of machine data. there's a new generation of data out there and splunk is how you harvest it, get data out of it. >> it was extraordinary to hear there were a lot of executives talking about machine to machine communication. and saying theess that -- hearing the chipmakers, of course, who are excited about the prospect for these billions and billions of chips which are not us talking about devices but

devices interacting with one another. is that consistent with what you're talking about? >> that's right. a lot of our telco customers are talking about there's a very different style or device among mobile phone users. you look at the music content they download, it's very divenlt for an iphone users or an android user. the way those machines talk to each other, that log device, you can analyze that machine language and get enormous value out of it. >> any examples from your company? >> sure. one of our customers analyzed all of their elevator data. they found out the combination of an employee smart card, they can analyze that and see foot traffic down to the office level and now they see the elevator is the leading economic indicator of whether a lease will get renewed. >> a great example of the innovative uses of data, but it

does, of course, raise major concerns about privacy and just about the sense that, you know, we're constantly being monitored. people always know what we're up to. >> if you're concerned about privacy, it's too late. your data is everywhere. so just get used to it. >> come on. what measures are there, do you think, to help people who think, for example, that a lot of what's going on will be used for me ferrous purposes? >> it's up to companies and i'm sure policy will be evolved. one of our cable companies has set back on all the top boxes. but they have to mask out your name and account number for data privacy purposes. so i think companies are getting much, much smarter about how to manage all the device-related data to use it for good, not for bad. >> what's your biggest challenge as a company going forward? >> managing growth. the number of employees, the

number of new customers, we had almost 2,000 new customers last year. hoped to it again this year. they're nice problems to have. >> i was going to say, you picked a nice problem. we'll have to leave it there. godfrey sullivan, thank you so much for stopping by. we're going to bring you the latest, as well, out of the boston on the story we're following for you this morning. nbc news's chris palone is going to join us now live. you're looking at pictures there of watertown, massachusetts. these are live pictures. dawn is just starting to break in the region after tragic events starting last night just after 10:00 p.m. and cambridge, massachusetts. that's where a car jacking and the killing of an m.i.t. campus officer led to a chase that apparently ended up in watertown. one suspect confirmed killed. one on the run. both linked to the boston marathon. so, chris, nbc news's chris palone joining us live.

what's the latest you can tell us this morning? >> sure. very chaotic and can fluid situation over in watertown, massachusetts, about eight miles west of downtown boston. from what we're being told, police are blocking off at least a 20-block area in watertown. they're using transit buses to remove residents. they're telling people to shelter in place if they are in that area, meaning stay in their homes. lock their doors. do not come to the door. call 911 if somebody approaches the door or verify that it is a police officer before you go to the door or leave your home. that means that police believe they have the second suspect cornered at some part of watertown, perhaps in a commercial building is what we're hearing. they believe that he's extremely dangerous. this all follows the last six hours which as you mentioned started with an armed robbery. then the killing of an m.i.t.,

the university over in cambridge, an m.i.t. police officer was shot and killed. a car jacking, two more armed robberies and then a chase over into watertown when police got to watertown with these two suspects. they got into a shoot out with one of them. he was shot and killed. police have confirmed that. and the other suspect was able to drive off and get away. that's kind of gotten us to the point that we're at right now. police say it is still a very dangerous situation with this second suspect. nbc news has confirmed that the suspects have been throwing bomb-type devices. there was a pressure cooker involved which is similar to what was found in the sunday boston marathon attack. the one in the white hat, suspect number two, they believe they have him corners, but he had still at large at this time. >> chris, thanks.

i'm just looking at some of the news we're getting here on wires. it largely confirms what we already know, that one of these two suspects was killed and that's the second, the one described as suspect number two in the white hat is on the run. it sounds as though they've identified about a 20-block radius where people were told to stay inside their homes. is that right? >> yeah, that's right. and people who are in the area and able to get out, they are placing on buses and is driving them out of the immediate area to get them out of harm's way. >> chris, as well, can you give us a quick sense as to what we've learned about these devices. there were reports that explosive devices were being perhaps thrown before the suspects were apprehended. >> yeah. there is been some conflicts in this. nbc's pete williams confirmed that at least one of them was spotted and is believed to be a pressure cooker-type bomb, a

pressure cooker from your standard kitchen filled with some sort of powder and perhaps projectiles. at other times, they were described as having something like grenades or improvised explosives. i've seen some reports in the last few minutes that there are believed to be undetonated explosive devices in the watertown area. that's why they're trying to get people as far away as possible. >> chris, thank you very much. we'll have more from nbc news's chris palone in the program. a quick check off markets for you. global markets are taking these event necessary stride. we know very little still about the motives, about these suspects, beyond the fact that one has been skilled and the other is on the run and authorities are trying, of course, to resolve this situation there. we'll be right back. stay with us here on "worldwide exchange."

welcome to "worldwide exchange." a manhunt is under way from watertown, massachusetts, for suspect number two in the post bo marathon bombings. police saying he should be considered armed and dangerous. and suspect number one shot with a fire fight with police that followed an incident at m.i.t. in which a campus police officer was killed last night. >> in the exchange of the gunfire, we believe that one of the suspects was struck and ultimately taken into custody.

a second system was able to plea from that car and there was an active search going on at this time. >> profits beat and revenue missed. microsoft and google all out with mixed numbers out from the bell. first quarter operating profits and revenues as its performance in asia slipped. >> if i look at the pipeline and the business out there, we have a solid business also in asia pacific. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. for those of you in the u.s. who may be just waking up to joining, we want to bring you the latest out of the boston area.

it began last night, in fact. two men identified by law enforcement sources as the boston marathon attack suspects armed with explosives and guns were battling authorities in a suburb of boston suburb watertown this morning. there was chaos until police took one man into custody and the other one fled. he is said to be armed and dangerous. one of the suspects taken into custody is dead. the other is still on the run. the standoff erupted shortly after the shooting of a police officer. now, references the photograph released by the fbi on thursday, authorities say it's the white hat suspect known as suspect number two who remains on the loose. again, as authorities told us in a preference conference this morning, he is considered armed and dangerous, a threat to

anybody who might approach him. that's why the authorities in that area are warning residents in the area to stay in their homes. they're warning motorists, as well, moving through obviously not to pick up anyone that they might see on the road. there are reports of explosive devices. one resident told cnbc he has a view of what he described as a pressure cooker device. the suspect at large is described as in a gray hoodie, a light skin male with brown curly hair. he's the one known as the suspect in the white hat from the boston marathon incident. the gunfire apparently lasted for a couple of minutes and there are reports that grenades or explosive devices were involved, as well. we will continue to bring the very latest on the situation out of boston this morning. chris palone will have more for

us in just a little bit. now, tuning to corporate news, ibm reporting earnings and revenue numbers that fell shy of analyst expectations. big blue stumbled in the first quarter on the heels of economic uncertainty and a drop in its hardware business. net income dropped about 1% and now analysts are questioning whether this is a temporary setback or whether the hardware business will weigh on revenue and profits longer term. big sell-off in ibm shares as a result today in frankfurt. down better than 6%. that's going to be one to watch in the u.s. session. another tech bellwether out with earnings is microsoft. its third quarter results topped wall street expectations even as it contends with global sales in pcs. driven by higher sales from windows and software products. cfo peter cline is leaving the company. he's just one of the many high level executives that have left recently, raising concerns about microsoft's ability to hold on

to talent. shares are rallying. seeing them up about 3% from just over 2% when things initially got under way here in trade. and search giant google reporting first quarter earnings on thursday. net income rose 16% on strong growth in its core ad business. but average price per click fell about 4 fers from the first quarter of 2012. on its conference call, executives assured shareholders that the company is looking to the future with computers that talk to users, drive cars and even send information before we ask for it. still, google shares down about 0.25% today. here is a look more broadly at the trading session as we start to turn our attention towards the u.s. in spite of the tragedy which i just mentioned in boston. and concern, of course, about the modum of those involved. futures are pointing higher. we're seeing a rebound shaping up across the european market. for the most part, the xetra dax, despite being weighed down

for example by that performance in ibm is continuing its rebound after a sharp sell-off earlier in the week adding 0.4%. it's a much stronger rebound for the ftse and ibex in spain. forex rates show the euro rallying today, as well. here is a look at the bond space, italy and spanish debt rallying. those safe haven bund and u.s. treasuries selling off just a little bit. forex, the euro/dollar, up about 0.3%. the aussie/dollar doing well, despite what we've seen in the commodity complex lately. dollar/yen up about 1%. nosing towards that 100 mark. talks of monetary easing will likely take center stage at the g-20 meetings in washington. especially after recent aggressive moves by the bank of japan. japan's finance chief continued to reiterate japan's technology is not against reflating its economy. but its south korean counterpart did question how sustainable those measures would be. here is what he told cnbc

earlier today. >> translator: when it comes to policy, it must be used for not to weaken the currency. >> the export-led south korean economy has been under pressure. the yen has weakened nearly 20% against the korean currency in just the past six months. you can understand the edge that potentially gives to japanese exporters. for more, let's talk to john hardy. welcome. >> hi. >> look, so does korea have a point here? should it be upset or is it, that japan, when it's continuing the strategy of trying to weaken the yen right when it says the yen was too strong? >> well, it's interesting because obviously these policies are aimed at deflation. they are aimed at weakening the yen. it's a question of whether they're going to overtly admit that or not.

korea has a right to react because this is going to affect fundamentals. i'm interested to see how china reacts, as well. if we look at the chinese yuan, it's close to 15-year highs. the whole currency war meaning g-20 not coming out with a stronger statement, but let's see how individual and asian exporters begin to -- >> do you think that's why we're seeing the yen up today because there wasn't more from the g-20 that they would say no-go? >> yeah. people seeing this as sort of the trigger or a green light for a bunch of new yen selling. let's see writ takes us. i think short-term, we've got a lot of volatility across markets. i don't think that's friendly necessarily. short-term, the yen weakening further. i think there's a lot of speculation out there. i think there's going be some two-way volatility in the trade. >> how much further, despite the near term maybe perhaps pull back that could happen. how much further could the yen go? >> it could go much turth. i think 10% to 20% over the next couple of years. assuming we don't have any major

affairs across the theme. >> we'll leave it there for the time being. john will stay with us. we're going to talk about the euro in a little bit, as well. coming up to the program, we'll be straight out to boston for more on the recent arrests tied to the boston marathon bombings. carfirmation. only hertz gives you a carfirmation. hey, this is challenger. i'll be waiting for you in stall 5. it confirms your reservation and the location your car is in, the moment you land. it's just another way you'll be traveling at the s of hertz.

welcome back to the program. for the latest out of boston, we

can tell you according to nbc's pete williams, two law enforcement officials saying to him a tebtive identification of the two bombing suspects indicates the marathon -- two boston marathon bombing suspects, they have been in the u.s. about a year, are in their early 20s and have some military experience. also reports coming in that the streets of watertown, massachusetts, the culmination of both the boston marathon bombings these suspects were involved in on monday and then the shooting at m.i.t. that led to their fleeing watertown are reportedly litter with devices. depending on their ability to acquire them may lead to a transit lockdown. chris, those details are certainly the latest that we're hearing. what can you tell us? >> obviously, it's a very chaotic situation and one that

police -- a nightmare for them because they want to keep as many people as safe as possible and at a time try and capture this second suspect. we're told that police believe this second suspect is the one seep in the boston marathon bombing wearing a white backwards hat. they believe he is holed up, possibly in a building in watertown, massachusetts, and they've created a 20-block perimeter around that area. they've brought in transit buses to try and get some of the people of the watertown out of the area. other people that they can't reach, they're telling to shelter in place, lock their doors, stay away from doors and windows, don't answer the door for anyone, call 911 if anybody approaches. they're going through that area looking for possible unexploded devices. there have been reports that during the police chase that led to the shoot-out and the killing of one of the suspects, that they were seen throwing explosive devices out of the vehicle. so, obviously, there are going to be some that need to be rendered safe or detonated that

are safe. all the while police are trying to make sure if they have this second suspect cornered, that he doesn't get away. >> chris palone from boston, thanks very much for that update. we want to give you an update on how markets are trading, as well, before we take another quick break. here is a key map across europe. we've got advancers outpacing decliners by about a 7 to 3 ratio. we'll be right back. plenty more to come on "worldwide exchange." stay with us. where cutting taxes for families and businesses is our business. we've reduced taxes and lowered costs to save businesses more than two billion dollars to grow jobs, cut middle class income taxes to the lowest rate in sixty years, and we're creating tax free zones for business startups. the new new york is working creating tens of thousands of new businesses, and we're just getting started. to grow or start your business visit thenewny.com

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welcome back to "worldwide exchange." police are telling nbc the streets of watertown, massachusetts, littered with unexploded devices. depending on their ability to render them safe and to arrest the second suspect, who is not only a suspect of course in what took place last night beginning with the shooting and armory in cambridge, massachusetts, leading now to watertown, massachusetts, and the suspect involved in the boston marathon bombings. in any case, one has been killed. the second suspect on the loose in the area. so, again, to reiterate, police are saying given the unexploded devices and the ability to arrest the second suspect, they may freeze transit in the watertown area and potentially lockdown the town and its ajou joining area. a decision has not been made yet. earlier at about 4:30 local time, in fact, local authorities did hold a brief press conference in which they tried to relay some of the events that had taken place and we'll play

you a little bit of that now. >> during the course of that pursuit, several explosive devices were discharged from the car at the police officers. in the exchange of the gunfire, we believe that one of the suspects was struck and ultimately taken into custody. a second suspect was able to flee from that car and there is an active search going on at this point in time. an mbta police officer was struck during that exchange of gunfire and is currently at the auburn hospital in critical condition. there is an active search by tactical teams from nemlec, the state police and the boston police department. the watertown police did the department are involved in this search as well as traffic diversion throughout the area. the most important message that we are doing right now is for public safety and the safety of those people in that neighborhood. we are asking everyone to shelter in place for the time

being not to leave their homes. if they see something suspicious, other than a police officer coming to their door, they should call 911 immediately. we also want to forewarn motorists that are traveling through this particular area, even though we're locked down in this neighborhood, that they should not stop for anyone and pick up anyone along the side of the roadway. what we're looking for right now is a suspect consistent with the description of suspect number two, the white-capped individual who was involved in monday's bombing of the boston marathon. he was -- we have a picture, a video from the 7-eleven in cambridge last night that he is dressed in a gray hoodie-type sweatshirt. he's a light skinned or caucasian male with longer brown curly hair. you've seen the picture. you all have it. that's the individual that we're

looking for at this moment. >> now, a bit more information about these individuals coming from nbc's pete williams. he says two law enforcement officials say a tentative identification of the two bombing suspects indicates they've been in the u.s. about a year, are in their early 20s and have some military experience. a second press conference now under way. let's listen in. >> explosions and notified our emergency department that there was obviously something happening. at that point, we began to gear up, concerned about a possible other mass casualty incident. at about 1:10, we were notified by the boston ems, by the radio system, that we had a patient that was coming in with multiple injuries. that patient arrived here at 1:20 by boston ems by the p-1 crew. but at that point, he was in a traumatic arrest with cpr

ongoing. we spent about 10 to 15 minutes trying to reset tate this patient with a number of procedures being done that were unsuccessful and at 1:35 in the morning, he was pronounced. >> my name is dr. kevin cab. i'm the ceo of the medical center. as dr. wolf said, we did receive this patient and were ready to receive as many casualties as we would need to be ready for. currently, we have about 20 patients in the ed, completely unrelated to this incident. we still do have 12 victims from the initial event hospitalized here at the hospital. one of them still in serious condition in the icu. we initially received 24 patients here from the original

event on monday. the vast majority of those patients have been discharged. we are open and ready for any patients to come to the medical center this morning. although we are restricting access to ensure safety for our patients, families and visitors and asking people to show patients as they come in this morning. >> was that patient brought in under police guard tonight? >> that patient was brought in with police guard, yes. >> can you describe the injuries? >> i cannot. we do want to make available the physician that initially heard the -- heard the event from watertown. >> my name is dr. shownfield. last night as i was watching the news and coverage of the officer-involved shooting over at m.i.t., i was sitting at home

and i was able to hear the sounds of gunshots and sxloes explosions because i live in watertown. and when i started hearing the gunshots and explosions, i recognized that something was really, really wrong and called the emergency department to let them know and then quickly got dressed to come into work and rushed over to the emergency department. >> how quickly did you get here? >> i arrived in the emergency department before the patient arrived. >> what time did you hear the gunshots? >> sometime after about 12:45. >> doctor, can you give us the name of the patient? >> no. >> we don't have any information on the identity of the patient. >> do you have an age or -- >> we don't have that information. it's an adult male. >> doctor, can you describe the feeling of being in watertown, hearing the noise and alert the

e.r., you come into work and end up being sa same patient, that's sort of i guess a sad irony? >> so it's -- there's a couple of different parts to it. one is when i started hearing the gunshots and the explosions, given what had happened over at m.i.t. and seeing all the police cars rushing into watertown past my house and hearing all the sirens, i knew or felt very strongly that this was related to the events from earlier this week as well as from what happened over at m.i.t. earlier in the evening. and so because of that, i felt as though something large enough was going on in the community that it warranted calling the emergency department and coming in and the emotions, you know, you sort of set aside when you come in to go to work and to do the job. >> did you actually work on the patient who had been shot?

>> so i really don't want to talk about that. >> oh, okay. because i was going to say, knowing what you knew going into it, doctor, how do you deal with that? >> so you give the best care you can to every patient that comes to you, regardless of what may or may not be because you don't know what happened out there and you don't know who they are. you don't know what the circumstances are. so whether it was, you know, a suspect, an innocent, a police officer, you have no idea who it is when they arrive and you give them the best care you can to try and help them. >> did you look out the window at all? could you see anything outside? >> so i did go and look out the window. i did not see anything other than the police cars rushing into watertown. >> being an urban medical center, you get patients brought in under police guard all the time. was there anything different in the emergency room? was it more police officer than usual, anything? this is very serious, what

happens happening here. >> so there was a large police presence when the patient arrived. more so than typical. but -- >> were they able to talk to the patient at all or gleam anything from him? >> i don't know what the police were able to -- i can't speak to that. >> the police commissioner did say there was a suspect that was killed. can you confirm that that suspect was here? >> no, we can't confirm at all. all we can say is that a patient was brought in. we don't have any more information than that. in fact, you probably have more information than we do about this. >> cause of death? >> this was a trauma arrest, multiple injuries, probably we believe a combination of blast potentially gunshot wounds. >> how many gunshot wounds? >> unable to count. >> i'm sorry, i didn't hear the rest of it. >> and probably a blast device, also. >> meaning? >> a explosive device. >> can you describe it? >> it was pretty much throughout the trunk.

it was multiple wounds. >> would it be consistent with a bomb -- >> unclear. i think the medical examiner will be able to conclusively say that. but there were signs or more than just gunshot wounds. >> blast injury to the trunk. >> yes. >> multiple gunshots. >> we're going to take maybe two or three more questions, but that's about all we can say. >> lose a lot of blood? >> unable to say. >> do we know if he said anything? >> all we know is he arrived in arrest here. we don't know what happened at the scene. >> and you're hearing from the hospital officials involved in treating the suspect. suspect number one as he's known from the marathon bombings who did die. interesting there to hear him say at that time cause of death was a blast, multiple gunshot wounds. it was more than just gunshots wounds, a possible explosive device. we'll be right back.

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we are asking everyone to shelter in place for the time being, not to leave their homes. if they see something suspicious, other than a police officer coming to their door, they should call 911 immediately. >> now, those were local authorities speaking earlier in a press conference at about 4:30 local time in watertown, massachusetts. this follows an extraordinary series of events that began at about 10:00 p.m. in cambridge, massachusetts, last night. that's again local time in which two suspects we can now say are the same two suspects in the boston marathon bombing on monday were involved in an incident that involved an armed

robbery, a car jacking, the death of an m.i.t. campus official. m.i.t. is now shut for classes today. after this incident, the entire scene moved to watertown, massachusetts, nearby where there was a series of events there which authorities were trying to describe this morning involving gunshots, involving explosive devices and telling nbc that there still remains unsfloeded devices in the area. two suspects, the one you're looking at there in the white hat known as suspect number two is still at large. suspect number one is dead and is we just heard from doctors says the cause of death was multiple gunshot wounds and also blast wounds. more than gunshot wounds is how they described it, an explosive device, possibly shrapnel was involved in the death of what you're looking at known as suspect number one from monday's bombing. the second suspect is at large, considered armed and dangerous. and this is why officials in watertown are taking

precautions. they are considering steps, including shutting down transit and potentially a lockdown on the city. our very own scott cohen is on the ground. let's talk to him. scott, what's the latest that you can tell us at this point? >> reporter: well, kelly, you've brought us to a great degree up to speed. where we are here in watertown where it is clearly a tension situation, a huge amount of law enforcement around looking for this suspect, the so-called suspect number two in the white hat who is believed to be at large and there is this issue with the potential of unexploded devices that are in the road, perhaps between cambridge and here and watertown which is just to the west. and so we are waiting along with everybody else to see whether they -- where this suspect number two is, other than at large. again, to recap, it all started late last night and on the campus of m.i.t. where a m.i.t.

police officer was shot and killed, as you reported. then on to a 7-eleven where a mercedes suv was car jacked. they drove, high speed police chase throwing devices, grenades, perhaps, out of the vehicle. here to watertown where there was a fire fight. there are reports that there was a pressure cooker bomb involved, which immediately tipped people off that these were -- if there was any doubt, the suspects in monday's marathon bombing. nbc news has learned that they may have international experience, the two of them. they have military experience, have been in the country for at least a year. of course, we don't know their connections beyond that. but the one that remains alive remains armed and dangerous and at large here in watertown. >> scott, is there anything further you can tell us?

we have pete williams reporting earlier that most law enforcement officials could tell him about these two suspects indicates they've been in the u.s. about a year, are in their early 20s and have some military experience. but, of course, as people continue to look for some reason, mode, etcetera of what's behind these in the first place, these details are going to become very important, i would imagine. >> that's absolutely right. as we said and as you repeated, yes, they apparently are college age or slightly past, have been in the u.s. about a year and have international ties and military experience. that's all we know. we don't know what the motive was and presumably as the day goes on, if they can apprehend this suspect number two alive, presumab presumably, we'll learn a lot more. >> scott, stay there if he can. we want to get a check off markets. it's a friday session, otherwise a very quiet session across europe. the implied open for the dow is now 90 points to the upside.

the s&p 500, the nasdaq pointed higher, as well. major bourses across europe are showing italy and spain leading the way higher. government debt markets taking it in stride. there's a look at the cnbc ftse global 300. now, we can also say we're expecting another police briefing from watertown within the hour or so to update us on the situation there. we'll have more with scott cohen. we're going to take a quick break first. stay with us here on "worldwide exchange."

you're looking at live pictures from the local nbc affiliate in watertown, massachusetts, reporting that transit service partly across the town has been suspended. one boston marathon bombing suspect is dead. the second on the run. the one who was identified as the man in the white hat or suspect number two from images and video the fbi has released. we will continue to follow the situation. we expect another press conference with police within the hour or so. and, of course, if that happens while we are on the program, we will bring it to you live. in the meantime, we are going to keep you updated on markets, as well. before the break, i said we are seeing markets shaping up. i want to turn it to corporate news for you, as well. blackstone has reported ly

abandon plan eggs to purchase dell. it does clear the way for michael dell and silverlake to proceed with their $24 billion buyout of the company. investment bankers are being forced to think twice before leaking info about m&a. tougher jail sentences and larger fines are being imposed for sharing insider information. according to a new report here in london. but despite these risks, the study says there are still incentives and ways to get around that. welcome. >> thank you. >> so, look, this has always been an important theme, which is, you know, forget activity generally and what it can tell us. just the leaking of information and the extent to which authorities a trackdown has been a major event in the last couple of years. but you're saying it's still happening? >> it is still happening, but to a lesser degree than before. when you look at the markets as a whole, one in ten deal seem to

display this leaking activity. that number is declined now. that number has declined to about 7%. >> there have been some high profile examples, though. if you go back to the berkshire hines situation, as ever, people, when there's a will, there's a way. this kind of activity still does happen. >> well, there is. one of the things that we found out from our study and talked to people is that most people said these leaks were not accidental. it was not somebody leaving information or being overheard on an airplane or leaving their mobile phone somewhere. it was deliberate that one party thought they would gain a benefit from it if, in fact, they had done it. >> did the results of this surprise you? >> they did surprise us. first off, we were surprised at the amount of decline. so the decline, we thought, would be much less than this, but really, the enforcement that's taken place, especially in the u.s. and even more so here in the uk really seems to be having an impact. but there's another impact, as well and that is with decreased

m&a activity, you would expect people would be less willing to leak because there is more likelihood you would get cause. >> or a bigger fish in a smaller pond. >> exactly. or if you're speeding down a highway and everybody else is speeding, as well, if there's a lot of traffic, you're going to get caught. if you're the only one speeding down a highway -- >> before regulators pat themselves o back, we should caution that there's reason to think that this leaking, this activity will pick up, as well. >> certainly it seems like the more activity, the more leaks. there is a question if, in fact, the activity comes back, will there be more leaks or will people have taken the message from what we've seen more recently, that they don't have a place to hide. >> and is there a way to compare what the u.s. and uk have done? is that enough for just these two granted major u.s. jurisdictions, but do we need to see is swiss and other

authorities following up suit? >> well, the uk has change its regulations. that in and of itself seems to have an impact. as well as making some very highly publicize d catching people who have already done this. the u.s. has been more willing to do the perp walk. other markets, they tend to take the lead from the u.s. and the uk. to some degree, i would expect the rest of the world to follow the u.s. and the uk on this rather than be independently different. no market wants to have the reputation of being a leaky market. we're going to take a quick break. when we come back, we're going to recap the latest out of

boston. we expect another press conference shortly. one of the suspects killed, the second is on the run following the boston marathon bombing on monday. stay with us. new york state, where cutting taxes for families and businesses is our business. we've reduced taxes and lowered costs to save businesses more than two billion dollars to grow jobs, cut middle class income taxes to the lowest rate in sixty years, and we're creating tax free zones for business startups. the new new york is working creating tens of thousands of new businesses, and we're just getting started. to grow or start your business visit thenewny.com zap technology.

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bringing the power of investments to people's lives. invested in the world. bny mellon. we are asking everyone to shelter in place for the time being, not to leave their homes. if they see something suspicious other than a police officer coming to their door, they should call 911 mea 1 immediate. >> good morning. thank you pb and we are primarily in this press conference speaking to the public, trying to provide guidance as to what the public should be doing and thinking about in the next hours while this situation is fluid. we have conferred with the governor, with the mayor of boston, and with all of the

surrounding city public safety officials and the governor has immediately suspended all public transportation service on the mbta system, that is buses and is subways. so all public transit services through the mbta have been immediately suspended. we are hoping that as we proceed through the next number of hours, that we will be able to turn back on portions of the system. but the system has been shut down now as a safety measure. people that are at the subway stations or at bus stops, we are asking them to go home. we do not want people congregating and waiting for the system to come back on. so we are asking people do not go out to the bus station, subway stations. if you're there, please go home. we also want to speak to the residents and the public within

the town of watertown and the cities and towns that are abutting watertown and to be specific, we are speaking to the residents of watertown, newton, walham, belmont, cambridge and the austin/brighton neighborhoods of boston. to those people, we are asking you to stay indoors, to stay in your homes for the time being. we are asking businesses in those areas to please cooperate and not open today until we can provide further guidance and information. so, again, to repeat, to the residents of watertown, newton, waltham, belmont, cambridge and the austin/brighton neighborhoods of boston, we are asking you to stay home, stay indoors. we are asking businesses not to open. we are asking people not to

congregate outside. we're asking people not to go to mass transit. and we are hopeful that as the day proceeds, that we can provide further guidance, that we'll be able to open portions of the system and be able to ease these restrictions. but we are imposed to that now. let me just ask chief deveaux, for the town of watertown, is there anything additional -- >> we just want to speak to the community of watertown. we're asking everybody to shelter in place. no vehicle traffic is going to be allowed to travel in or out of waurttown until further notice. no businesses will be allowed to be opened. >> i want to be clear, no, before we take any questions, i need to be clear about this. this situation is grave. we are here to protect public safety in these towns right now. i know there's national media

here, i know you have a lot of questions. there will be plenty of time to deal with that over the ensuing hours. right now, we have to deal with this local issue here. so we appreciate your patience. again, to reiterate what i said earlier, we believe these are the same individuals that were responsible for the bombing on monday at the boston marathon. we believe that they're responsible for the death of an m.i.t. police officer and the shooting of the mbta officer. this is a serious situation we're dealing with. we will appreciate your cooperation. we'll do the best we can to keep you apprised, but we can't answer every single question about this investigation at this particular point in time. thank you very much. we'll let you know as much in advance as possible. >> that was boston police telling people in the area that the mbta has, at that particular time, been shut down for the day. this is a major transit shutdown. even though the cities of weartown and the others you mentioned, as well, even

cambridge are relatively small in terms of population, the greater boston area is a major u.s. population center. and in terms of daily ridership, according to its website, the mbta is the nation's fifth largest mass transit system, across a nation of 75 million, an area of more than 3,000 square miles. this involves buses, trains, street cars, commuter rail coaches. it's, in fact, one of the biggest users of electricity in the nation, as well. just to give you some context here, while the series of events very quickly move to the relatively small town of watertown, massachusetts, it does, of course, involve the entire greater boston area as authorities continue, as i said, less concern with identifying the two suspects as they are with finding the second suspect would you're looking at in the white hat. this suspect, the second suspect, said to be on the run. as a precaution, boston is

shutting down the mbta, taking all steps possible in order to ensure the safety of people, tell people in watertown where there were shootings and reports of unexploded explosive devices in the streets after a confrontation between these two suspects and police, telling people not even to turn on their motor vehicles for fear of potential incendiary devices, telling them to stay at home. police at one point said they were going to be going door to door asking questions and looking for the suspect. he is described as armed and dangerous. a threat to anybody who might approach him. and we can tell you from nbc's pete williams what we do know about these two suspects is that they have been in the u.s. about a year, are in their early 20s and have some military experience. and i should be careful about the tense i'm using there. the other suspect was killed in the confrontation. hospital doctors speaking earlier in a different press conference said in terms of the cause of death, there were blasts identified, multiple

gunshot wounds. he had it was more than just gunshot wounds which killed the other suspect who is not pictured here. so explosive devices including possibly shrapnel were described as what they were treating for the suspect who did die after this confrontation. that very quickly moved to watertown, massachusetts, nearby where a series of confrontations took place. it result in the death of one suspect, the other being on the run both linked to the boston marathon bombing on monday. we're now taking live pictures. you're looking here at watertown, massachusetts, again, the site where the latest

confrontation took place. want to give you a quick check off markets, as well. futures globally -- i'm sorry, u.s. futures shaking this off and markets globally are completely taking these event necessary stride. you're looking for a pretty strong open there for the dow. here is a look at the bond wall, as well. because we haven't seen any change from the earlier theme. no bid necessarily in the flight to safety asset classes there. the german bund, the u.s. treasury still selling off a wee bit to 1.25% and 1.7% respectively. peripheral debt seeing a bit of a rally. this is echoed by the rally we're seeing in spanish and italian equities, as well. you're seeing there, 1.4% to the upside, in fact, for spain. so if there was any sense that these events would translate into jitters and markets, we are certainly not seeing it this morning. much, of course, will depend on what more we learn about these two men and, of course, whether there's any connection with geopolitics more broadly or whether it was a one-off incident. copper there in the red. but otherwise, we're seeing

rebounds in brent crude and even spot gold up almost 2% today. let's just recap for those of you who may be waking up to join us this morning, wondering what you're looking at in the u.s. these are live pictures of watertown, massachusetts, brought to you by our nbc local affiliate there. and what we can tell you is that after the boston marathon bombings on monday, two suspects tied to those bombings, pictures of which the fbi released yesterday, now we can tell you one of those suspects is dead. the suspect would you're looking at there. the other, known as suspect number two in the white hat is on the run in the watertown, massachusetts, area. both of these suspects wound up there after a series of events that started at about 10:00 local time last night in cambridge, massachusetts, on the campus of massachusetts institute of technology involved the shooting of an officer there, a car jacking, and then the two individuals moved to the

watertown area where there was another confoptation of the watertown police. this suspect now on the run across the area. as a result, the mbta, which is a major u.s. transit system serving the entire greater boston area has been shut down. according to its website, the mbta is the nation's fifth largest mass transit system serving an area of more than 3,000 square miles. the m.i.t. campus, despite reassuring faculty, students, professors there that the situation is safe, is shut down today and is mourning the death of one of its police officers. we can also tell you president obama was briefed overnight. on the series of events by lisa moniker, assistant for homeland security and counterterrorism. again, going back importantly to the details, what we do know about these suspects, which we can tell you from our very own pete williams is that they are in their early 20s, they've been in the u.s. about a year, and

they have some military experience. that's all we feel comfortable reporting at this point. so, again, massachusetts institute of technology classes are canceled. the mbta transit service, which serves the greater boston area, including of course a lot of major financial firms is shut down on this friday. markets, though, shrugging it off or i should say not seeing any broad fallout. we're seeing a rally shape up in u.s. futures. we're seeing rallies across global markets. sovereign debt is performing well. here is a look at the latest on the dow, the nasdaq and the s&p. hire is a look, as well, as european markets. u.s. "squawk box" will be picking up the story for us as soon as we're done here on "worldwide exchange." we've been keeping an eye to see if there would be any further reaction from our guests that we've spoken with or, again, from traders yrlly. but it remains a friday that was supposed to be generally quiet,

not a lot of major news until these tragic events. thank you very much for joining us here on the program and we'll hand it over to you in the u.s. on "squawk box" and hope to see you back here on monday. verify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it.

breaking news out of massachusetts this morning. one marathon bombing suspect is dead. the second is on the run. authorities warn he should be considered armed and extremely dangerous. >> here is the latest from nbc news. this mayhem began last night when the suspects appeared to have confronted an m.i.t. police officer. they shot him in the head and killed him. there is another police officer from m.i.t. who is seriously wounded. one of the suspects was seen on surveillance tape obtained by police robbing a cambridge 7-eleven. those suspects then carac